The IT industry is over five decades old. From the very beginning in this industry we saw two major trends: first was the Mainframe boost and then came in the client-server model. The world is increasingly getting smarter and intelligent .IT business leaders are under constant pressure to increase business, reduce cost, initiate newer revenue streams, offer faster to market products and meet dynamic customer requirements. Cloud computing can be considered as a third generation IT model that can create and deliver new value and overcome the IT boundaries like never before.
The new generation of computing and data storage mainly leverages the outsourcing model that many enterprises are increasingly adopting. IT industry has been quick to recognize and respond to this shifting paradigm. It has begun to leverage this by categorizing business into strategic IT services and Non-strategic IT services. Out sourcing this non-strategic part to specialized companies who has the business and technical acumen to manage data, computing, platform is a growing trend that has given birth to cloud computing. It can be easily defined as an IT delivery model that offers shared infrastructure and computing resource as a “Pay-per-Use” service.( Bharadwaj et al. 1999)